KATWAL ASSET
MANAGEMENT

Despite fall triggered by #Covid19 strategy has performed relatively well. Strategy has winning probability of 80% over total period of time it has run.
 
Slippages and Brokerage: - Brokerage is calculated at Rs. 9/lot and another 3 Rs. is taken as slippage while executing the straddle. So the equity curve and daily/monthly profit/loss figures are after taking in account the slippages and brokerages. We believe this is as close as real result that this strategy will give.
 
Return in 3.5 years of back testing is 177% i.e. 300,000/- over a capital of 200,000/-.
 
Here are some more statistics about the strategy:
 
Average Net ROI on total capital – 2.4% per month
Average Net ROI on margin utilized – 4.14% (as extra capital was lying vacant because of less margin)
Maximum Gain in a day – Rs. 12,907/-
Maximum Loss in a day – Rs. -8,677/-
Maximum Profit in a month – Rs. 34,315/-
Maximum Loss in a month – Rs. -7840/-
Maximum Series of Losing days – 6
Maximum Series of Losing Months – 2
Back Test period – 41 months
Winning Months – 33
Losing Months – 8
 
Fee – 15% of profits + 2% Fees +750 pm for algo cost
 
On a base capital of 2.25 lakh, considering an average ROI of 51% i.e. 90,000 followings are the cost:
1. 9000 For Algo Running Platform (deducted monthly from trading account monthly at 750 per month and posted to ledger)
2. 4500/- (2% Fees of KAM for multiplier 1)
3. 15% on profits i.e. 12000 annually
Adjusted Yearly return = 36% approximately (please note we are basing these figures on return on margin utilized and not total capital). Even if total capital is 3,00,00/-, at any given time, the total utilized margin will remain 1,80,000 i.e. Unless total fund value reaches 4,50,000/- where in algo has capital for 2 lots, it will continue to use 1 lot margin.
 
What if you want to trade 2 lots?
We will set the account for a multiplier of 2 i.e. 4,50,000/- capital will be required and 2lots will be executed. The same goes for if someone wants to avail the facility of 5 multipliers. But minimum capital is 2,25,000/-.
 
How to start:
1. Open your trading account through KAM with Nirmal Bang Securities Ltd.
2. We will require an Algo Agreement which has to be mandatorily sent by the client before algo starts. We will provide the format.
3. Define the Multiplier you want to trade. 1 Multiplier requires 2.25 Lakh capital.
4. We will set Bank Nifty brokerage to Rs. 9/lot
5. Pay up 2% annual fees to KAM. For 2.25 lakh its, 4500/-. (non-refundable)
6. Fund your account.
7. 15% profit will be charged quarterly every 3 months (not monthly).
 
If you have any queries, feel free to contact us at katwalassetmanagement@gmail.com. If interested in availing the services, kindly fill the consent form below and we will get in touch with you for account opening purposes and initiate the process 👇